The Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT) offers higher yields through corporate credit, while the iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) prioritizes lower volatility and government backing.
Investors seeking fixed-income exposure often weigh the stability of government debt against the potentially higher yields of corporate bonds
Both funds target the intermediate portion of the maturity curve, but they differ significantly in credit risk, duration, and cost. This comparison examines how these characteristics impact total returns and portfolio volatility. Snapshot (cost & size) Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield. The Vanguard fund is notably more affordable with a 0.03% expense ratio compared to 0.15% for the iShares fund.